Local Sports Brand Performance Growth Slowdown, Excessive Expansion, Reappear New Sequela

After the Spring Festival of 2012, a layoff order will make the former domestic sports.

Growth decline

Anta sports released its annual report 2011 in 20.

The announcement shows that

Anta's net profit growth in 2010 was 24%, while its turnover increased by 26.1% during the same period. The net profit and turnover growth in 2011 decreased by 12.5 percentage points and 5.9 percentage points respectively compared with 2010.

Contrast shows that Anta's growth in 2011 has declined, and its net profit has increased by less than 20% for the first time since its listing in 2007.

Lining's performance forecast also shows that group revenue in 2011 is expected to decline by 6% - 7% compared with 2010.

In addition, XTEP international recently announced that the order volume of the first quarter of 2012 and the two quarter of the company increased by 9% and 5% compared with the same quarter in 2011, and the growth rate dropped sharply.

It is understood that XTEP's first quarter and second quarter 2011 orders increased by 23% and 25% respectively.

PEAK's previously published data showed that the order volume in the second quarter of 2012 increased by 9.5% compared with the same quarter in 2011, the lowest increase in PEAK's orders since 2009. Anta also said on the 20 day that orders for the third quarter of 2012 would have a negative growth in high unit numbers.

"Sports brands in 2012 will have a good performance if they can achieve single digit income growth."

Insiders said.

It is understood that in the past 10 years, Chinese sporting goods enterprises have generally experienced the "golden age" of annual income increasing by 20% to 30%.

Overdilatation sequela

"In fact, whether Lining layoffs, or Anta, XTEP and other enterprises are facing the decline in performance growth, are the early expansion of the adverse effects."

Chen Xiangjiang, a sports brand dealer in Quanzhou, told reporters that the high growth of the sporting goods industry in the past few years has attracted a large number of enterprises to enter. In order to seize the market quickly, enterprises often take the way of quickly opening stores and expanding their capacity, ignoring the endurance of the enterprises themselves and the market.

"For example, the original market has increased by only 20% a year, and the enterprise has produced more than 60% of the products. A large number of products have naturally become a backlog of goods. For example, the original sporting goods shop in one block is nearly saturated, some enterprises continue to enter, shops rent naturally rises, and the profits of single stores are bound to slide."

Chen Xiangjiang said.

Inventory growth has become a common phenomenon.

According to Anta's earnings report, as of December 31, 2011, Anta's inventory amounted to 618 million yuan, up 36.1% compared with 454 million yuan in the same period last year. Anta's accounts receivable and other receivables amounted to 1 billion 709 million yuan, up from 990 million yuan in the same period last year, an increase of 72.6%.

"At present, the dilemma faced by local brands is that" before there are strong enemies, then there are soldiers pursuing them, "coupled with the serious homogenization of products, the next may face a difficult pition period.

Analysis of the industry.

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At the end of the year or better

Some sports brands have realized the challenges faced by the industry and have begun to take the initiative to make adjustments.

"From the second half of 2011, we found that Anta, XTEP, 31st degree, PEAK and other enterprises have slowed down the pace of opening stores, closed some unprofitable shops, and began to highlight their own characteristics on products.

For example, PEAK focuses on basketball; XTEP tends to be fashionable and fashionable;

At the end of the year, these responses will be gradual. "

Hou Lidong, an insider, analyzed.

Prior to this, PEAK group CEO Xu Zhihua said in an interview with the media, "after ten years of growth, the Chinese sports industry has entered the platform period. It may take two years to adjust. After adjustment, it will be a step further. This is the objective rule of the industry."

Although Anta said recently that the third quarter orders will have negative growth in high unit numbers, it also said, "I believe this is the minimum quarterly total of orders, and things will improve after that."

"The sporting goods industry is experiencing the most painful period in the industry. From the high income and high growth to the decline of the industry and the intensified competition in the market, the brand will be left behind by the impact of competition.

And the industry pattern will also change. The comprehensive domestic brand will be reduced to 2 to 3, and some brands will become regional brands or subdivision brands.

Analysis of the industry.